Gold capped the biggest weekly loss since mid-December as a stronger dollar lowered the appeal of precious metals as alternative investments. Silver also fell.
The US dollar jumped as much as 0.8 per cent against a basket of currencies after German retail sales unexpectedly declined in January. Gold has declined 3.7 per cent this week, the largest drop since Dec. 16, while the dollar has advanced 1.3 per cent.
"The dollar is pushing gold down," Pratik Sharma, a fund manager at Atyant Capital Management said.
Gold futures for April delivery fell 0.7 per cent to settle at $US1709.80 an ounce on the Comex in New York. Prices fell 1.7 per cent last month after the Federal Reserve gave no signal of additional economic stimulus, spurring the biggest one-day drop in 11 weeks on Feb. 29.
"It will probably take a few more days for physical demand to really come in with full force" as recent price drops are likely to spur purchases, Edel Tully, an analyst at UBS in London, wrote today in a report.
The precious metal has gained 9.1 per cent this year as holdings in exchange-traded funds backed by bullion reached a record yesterday.
Silver futures for May delivery on the Comex fell 3.2 per cent to $US34.525 an ounce, capping a weekly loss of 2.5 per cent.
On the New York Mercantile Exchange, platinum futures for April delivery declined 0.6 per cent to $US1691.70 an ounce. The metal dropped 1.4 per cent this week. Palladium futures for June delivery decreased 0.6 per cent to $US712.55 an ounce.
Bloomberg
The US dollar jumped as much as 0.8 per cent against a basket of currencies after German retail sales unexpectedly declined in January. Gold has declined 3.7 per cent this week, the largest drop since Dec. 16, while the dollar has advanced 1.3 per cent.
"The dollar is pushing gold down," Pratik Sharma, a fund manager at Atyant Capital Management said.
Gold futures for April delivery fell 0.7 per cent to settle at $US1709.80 an ounce on the Comex in New York. Prices fell 1.7 per cent last month after the Federal Reserve gave no signal of additional economic stimulus, spurring the biggest one-day drop in 11 weeks on Feb. 29.
"It will probably take a few more days for physical demand to really come in with full force" as recent price drops are likely to spur purchases, Edel Tully, an analyst at UBS in London, wrote today in a report.
The precious metal has gained 9.1 per cent this year as holdings in exchange-traded funds backed by bullion reached a record yesterday.
Silver futures for May delivery on the Comex fell 3.2 per cent to $US34.525 an ounce, capping a weekly loss of 2.5 per cent.
On the New York Mercantile Exchange, platinum futures for April delivery declined 0.6 per cent to $US1691.70 an ounce. The metal dropped 1.4 per cent this week. Palladium futures for June delivery decreased 0.6 per cent to $US712.55 an ounce.
Bloomberg
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